SHETLAND Development Trust could lose as much as £500,000 from the

collapse of Hoove Salmon and Papil Salmon.

The assets of the two companies have now been sold to Scottish Sea Farms, receivers PricewaterhouseCoopers announced today.

Receiver Bruce Cartwright said that management at the trust had been "extremely co-operative" in working with the receivers.

As a result, his team managed to make a "substantial recovery" although final figures were not available yet.

He said that it was likely that the local investment firm would recover more than half of its loan of £1.187 million.

Trust manager Neil Grant was not prepared to discuss

the issue when contacted.

Hoove Salmon and Papil Salmon, originally owned by the Grains brothers,went into receivership in May and December last year.

After lengthy negotiations, which involved a number

of interested companies, PricewaterhouseCoopers announced that Scottish Sea Farms were the successful bidder.

In a prepared statement Mr Cartwright said: "I am delighted that the sale of the assets has concluded. The quality of the sites is reflected in the number of parties with whom we have been working over the last months towards this sale.

"Now that it is concluded, a presence in Shetland has been secured for this important industry." He added that the deal did not include the farmed cod held in cages at Clift Sound.

Scottish Sea Farms managing director Jim Gallagher added: "This acquisition is a strategic investment for Scottish Sea Farms and further strengthens our operating activities in Shetland."

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